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Cover you can count on – premiums explained

Life Insurance can change lives for the better. Plus, it doesn’t have to be complicated, or expensive. Here, we explain how premiums work.

Life’s good. Make sure your cover is too.

Many people don’t like to think about life insurance. And while we agree that it’s not one of the most exciting things you’ll do in your life – it could actually be one of the most responsible things you ever do for you and your loved ones. The thing is, you never know when you’ll need insurance. In the event of a claim you won’t regret having it!

We see life insurance as a foundation for helping you celebrate life – whether you’re just starting off on your big life adventure, or getting on in life. That’s why it’s important to structure your premiums in a way that will enable you to keep your cover in place over the long-term and through the lean times.

"Just take a moment to reflect on what could be, and what could happen... It’s about protecting your future lifestyle."
Simon Evans, Asteron Life customer

What makes up a premium?

Premiums are calculated by looking at lots of things like your age, gender, smoking status and medical history. For some insurance policies we might also ask details about your income, occupation, and if you’re involved in any high-risk or hazardous activities.

Natalie's story

Inspiring insights from an amazing woman. Spare a few moments to watch Natalie's inspirational message.

Pam’s story

Pam was a busy Kiwi mum with her own business, a husband and two teenage boys. In 2003, illness threw a spanner in the works.  Find out how Pam's life and income protection cover kicked in to help her and her family.

Do premiums increase over time?

This is largely dependent on how you structure your insurance. When you take out a life insurance policy with Asteron Life there are two different ways you can set up your premiums: stepped or level.

Stepped premiums start low and increase as your age and likelihood of claiming increases. Whereas, Level premiums start higher but usually stay constant over the life of a policy.  This can save you thousands over the long run.  The great thing about level premiums is it makes budgeting a lot easier – you know what the cost will be now and in the future. This can be really useful as you approach retirement, for example.

Other things that can affect your premium include changes to legislation (eg tax laws), the state of the economy and inflation.   Inflation pushes up the price of things like groceries and petrol year after year, and in real terms that reduces your cover. To help combat this, many customers choose to increase their premium by a small percentage, known as an Inflation adjustment.(As the amount of cover changes, the premium reflects this).

It’s easy to focus on premium, but it’s equally important to remember why you're taking out life insurance in the first place – usually to protect the lifestyle you’ve worked hard to create.

If you have a policy, and want to know more about how to make your premiums work for you talk to your adviser or contact us - we're here to help.

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